Indonesia records inflation of 0.09% in April

After seeing deflation a month earlier owing to the harvest season, the country recorded monthly inflation of 0.09 percent in April on account of increases in the prices of most commodities.

Inflation in April brought annual inflation to 4.17 percent year-on-year (yoy), the Central Statistics Agency (BPS) announced on Tuesday.

“I think inflation at 0.09 percent in April remained in line with what the government is trying to manage because there will be bigger challenges in May and June,” said BPS head Suhariyanto in a press conference.

The agency warned prices of food commodities could increase in May due to rising demand during Ramadhan.

In June, Suhariyanto said, prices would rise as an effect of the second hike of electricity rates for 900 volt-ampere (VA) capacity in May.

“The electricity rate increase will occur in May, but the impact will only be seen in June because most customers of 900 VA are post-paid type rather than prepaid,” he said.

The price increases in April occurred in administered prices, particularly electricity and fuel, as well as in a number of food commodities such as garlic, chicken, tomato and dogfruit.

Meanwhile, price decreases in April were seen in major food commodities such as red and green chili, rice, sugar, beef and chicken eggs. (bbn)